Entrata Launches First-Ever Resident Report
In an effort to gain a better understanding of the resident experience and what properties are doing well and what they can improve upon, Entrata launched its first ever Resident Report. The Report contains the results of a survey of 2,000 renters living in managed properties with more than 50 units.
Entrata partnered with Qualtrics to conduct this survey. With a total addressable market of 44 million renters, the sample size of 2,000 respondents results in a ~3.5% margin of error.
Renters feel unsettled about the economy
When asked their opinion on how well they felt the economy was doing, nearly 60% of respondents felt that the economy was either in a recession (37%) or a depression (22%), while just 21% felt the economy was growing. To top that off, one third of respondents felt they were barely getting by, while 23% found it difficult to get by. As a result of these unsettled feelings about the economy, there was a strong sentiment throughout the survey about the need for flexibility from property managers when it comes to both fees and flexibility in the methods and timing of payment for rents, deposits and fees..
Additionally, renters are 1.7x more likely to be unemployed than the national average (6% vs. 3.5%), which could be due to a number of factors, including working in industries that are more impacted by an economic downturn.
More and more people see renting as a choice
More and more people are choosing to rent, not because they have to, but because they like the lifestyle that renting can afford them. More than one third of all respondents indicated their next move would be to another rental property, with flexibility being the prime driver, and 37% plan on renting for three or more years.
Rental rates stabilizing
Forty-one percent of respondents said their rental rates have stayed the same over the past 12 months while 31% indicated it increased, with just 2% saying their rates decreased. This is consistent with findings by NMHC projects that rent will decrease by 3.3% in 2023. Prior to the pandemic rents would grow by approximately 3.6% annually. For those aged 18-34, only 25% saw a rental increase and 44% saw no increase in rent year over year.
Renting provides residents with flexibility
Likely as a result of the financial position they find themselves in, residents are looking for more financial flexibility and they feel like they can find that by renting as opposed to home ownership. When asked why they prefer renting to home ownership, the number one reason respondents cited is they didn’t want to be tied down to a mortgage, followed by the flexibility and freedom offered by renting.
Renters crave convenience
Whether it be a streamlined application and approval process or engaging with property management to submit a maintenance request, residents want as little friction as possible. One of the biggest areas where property management companies are giving their residents more convenience is through self service apps that can do everything from apply for a lease, pay rent, make maintenance requests, and even renew leases.
Location and rental rates are primary drivers in renter’s choice
Location and rental rates are overwhelmingly the reason people choose to rent from one property over the other. Respondents also rated neighborhoods and neighbors contained in the community highly, followed by how easy the application process is.
Rental Rates (70%) Location (69%) Neighborhood/Neighbors (48%) Amenities (43%) Responsiveness of management (36%)
To access the entire Resident Report and gain insights into the latest trends impacting the industry click here.